Chapter 9, Problem 5QC

Brimfest Corporation issued $2,400,000, 10-year, 6% bonds for $2,352,000 on January 1, 2019. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Brimfest’s fiscal year ends on December 31. The amount of discount amortization on July 1, 2019, would be

  a.    $2,400.

  b.    $4,800.

  c.    $48,000.

  d.    $144,000.